Australia sees strong wage growth in December 2021 quarter

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Australia sees strong wage growth in December 2021 quarter

Employers are shelling out more money to retain workers.
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Highlights

  • Wages rose 2.3% annually during the December 2021 quarter.
  • The significant growth in wages can be attributed to the shift in the bargaining power of the employees.
  • There has been an acute shortage of skilled workforce in the Australian industries amidst border closures, which may soon in the following months.

In a refreshing series of events, wages growth in Australia took another leap in the last quarter. According to the Australian Bureau of Statistics (ABS), the country recorded a 2.3% annual rise in the Wage Price Index in the December 2021 quarter.

Interestingly, the Reserve Bank of Australia (RBA) has reiterated the need for wage growth before embracing interest rate hikes. With wages pacing up gradually, it seems the RBA’s wage growth target might be met this year, answering the most widely stipulated question of the interest rate hike’s timeline.